Abu Dhabi // The UAE and Saudi Arabia increased pressure on Qatar on Wednesday, warning “the moment of truth is drawing near” for Doha to make a decision on the 13 demands delivered by Gulf states and Egypt last week.
Dr Anwar Gargash, Minister of State for Foreign Affairs, described the situation for Qatar as “dire” as the Monday deadline for the demands to be met looms.
“The moment of truth is drawing near. We call on our brother to choose his element, to choose honesty and transparency in his dealings, and to realise that media clamor and ideological heroism are short-lived,” he said.
Earlier on Wednesday, Qatari foreign minister Sheikh Mohammed bin Abdulrahman Al Thani condemned Riyadh’s refusal to negotiate the list of demands sent to Doha last week with a 10-day deadline.
“Our demands on Qatar are non-negotiable. It’s now up to Qatar to end its support for extremism and terrorism,” tweeted Saudi foreign minister Adel Al Jubeir, apparently in response to Sheikh Mohammed’s comments.
Mr Al Jubeir, who is currently visiting Washington, confirmed that his country will not ease the trade embargo imposed on Qatar until all demands are met.
The demands sent to Qatar last week by the UAE, Saudi Arabia, Bahrain and Egypt include the scaling down of its relationship with Iran and the closure of its Al Jazeera news network. The four countries are also demanding that Qatar agree to monthly audits on government finances and end its alleged funding of terrorist organisations around the Middle East.
On Friday last week, Dr Gargash threatened Doha with “divorce” from the GCC if the demands were not met.
Another option being considered are fresh sanctions on Qatar, the UAE ambassador to Russia said. The UAE and Saudi Arabia could ask their trading partners to choose between working with them or Doha, Omar Ghobash said in an interview with The Guardian newspaper.
“There are certain economic sanctions that we can take which are being considered right now,” he said. “One possibility would be to impose conditions on our own trading partners and say you want to work with us then you have got to make a commercial choice,” he said.
He said the expulsion of Qatar from the GCC was “not the only sanction available”.
Mr Ghobash also told CNN that Gulf countries had been bold in pinpointing extremist figures in Qatar in a list published earlier this month.
The Qatari foreign minister is also in Washington where he held talks with Mr Tillerson on Tuesday, shortly before the US secretary of state met with Kuwaiti minister of state for cabinet affairs Sheikh Mohammad Abdullah Al Sabah whose country has taken on the role of mediator in the dispute.
The list of demands “is contrary to the principles that govern international relations because you can’t just present lists of demands and refuse to negotiate”, the Qatari foreign minister said on Wednesday.
But Dr Gargash stood firm in his comments on Twitter.
“We have long suffered [Qatar’s] conspiracy against our stability and witnessed its support for ideologies that aim to sow chaos in the Arab world. Enough. Return to reason,” he wrote.
nalwasmi@thenational.ae
* with additional reporting by Agence France-Presse
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Electric scooters: some rules to remember
- Riders must be 14-years-old or over
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Tamkeen's offering
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Killing of Qassem Suleimani